(Adds quote from outgoing CEO, background on industry)
Dec 18 (Reuters) - Ares Management LP said on Monday it had promoted its co-founder and president, Michael Arougheti, to chief executive officer, making it the latest private equity firm to lay out its succession plan this year.
Arougheti will succeed co-founder Tony Ressler, who will continue as the company's executive chairman, the firm said.
"Mike Arougheti was instrumental in building and growing our Credit Group and expanding our businesses in the U.S. and Europe, and now is the time for him to assume greater oversight of all of Ares," Ressler said in a statement.
Chief Financial Officer Michael McFerran will take on additional responsibilities as chief operating officer, the Los Angeles-based company said. The appointments will take effect on Jan. 1.
The private equity industry - which buys companies with the aim of selling them at a profit, usually after three to five years - rose to prominence in the 1980s and 1990s. Several such firms are now outlining plans for the next generation of managers. Ares was founded in 1997.
Carlyle Group LP and KKR & Co LP both announced succession plans earlier this year.
Ares, which also has a big credit investment business, had approximately $106 billion of assets under management at the end of September. Its investments include U.S. department store operator Neiman Marcus Group Inc and U.S. discount retailer 99 Cents Only Stores. (Reporting by Diptendu Lahiri and Joshua Franklin; Editing by Jonathan Oatis)